Asia Tracks Wall St, Europe Rebounds 09/22 05:58
European shares bounced back Tuesday, while Asian benchmarks extended their
(AP) -- European shares bounced back Tuesday, while Asian benchmarks
extended their slide.
Germany's DAX rose 1.1% to 12,679.53 and the CAC 40 in Paris picked up 0.5%
to 4,816.09. Britain's FTSE edged 0.1% higher to 5,807.31. U.S. futures were
little changed, with the contract for the S&P 500 unchanged and the future for
the Dow industrials down 0.1%.
China-U.S. tensions and coronavirus concerns have cast a shadow after months
of gains that have taken shares to new record highs after the meltdowns seen
during the spring, analysts said.
"Notably, the Covid-19 noise is increasing in the UK and Europe as summer
partying has left case numbers surging, threatening more widespread lockdowns
yet again," Jeffrey Hally of Oanda said in a commentary.
He added that, "one of the dangers to the global recovery, would be the
imposition again, of national level lock-downs in major developed economies.
That risk appears to be rising, unfortunately."
In Asian trading, Hong Kong's benchmark Hang Seng lost 1% to 23,716.85 and
the Kospi in South Korea sank 2.4% to 2,332.59. The S&P/ASX 200 in Australia
gave up 0.7% to 5,784.10 and the Shanghai Composite index skidded 1.3% to
Shares in India, Taiwan and Southeast Asia also fell.
Stocks of some big banks fell after a report alleged that several are
profiting from illicit dealings with criminal networks. The report helped drive
a massive sell-off across global markets on Monday and its impact was still
reverberating Tuesday in Asia.
The report by the International Consortium of Investigative Journalists said
leaked government documents show that the banks, including JPMorgan, HSBC,
Standard Chartered Bank, Deutsche Bank and Bank of New York Mellon, continued
moving illicit funds even after being warned of potential criminal prosecutions.
The documents were obtained by BuzzFeed News and shared with the ICIJ.
Hong Kong-traded shares in HSBC Holdings PLC skidded to their lowest level
since 1995, closing 2.1% lower. Shares in its smaller rival, Standard Chartered
PLC, dropped 2.3%.
Other banks also have come under pressure on the assumption some may have
served as intermediaries in transactions.
Airlines shares also declined Tuesday on concerns that a resurgence of
travel restrictions related to the pandemic may further damage the travel
sector. Korean Air Lines Co. lost 2.4%, China Eastern Airlines' swooned 5.7%
and Singapore Airlines lost 1.8%.
Wall Street has been shaky this month, and the S&P 500 has dropped 8.4%
since hitting a record Sept. 2 amid a long list of worries for investors.
The S&P 500 fell 1.2% on Monday to 3,281.06 for its fourth session of
losses, the longest losing streak since stocks were selling off in February on
Investors are worried that stocks have gotten too expensive at a time when
coronavirus counts are still worsening, Congress is unable to deliver more aid
for the economy, U.S.-China tensions are rising and a contentious U.S. election
The likelihood that Congress may soon deliver more aid to the economy after
extra weekly unemployment benefits and other stimulus expired has been
In other trading U.S. benchmark crude oil picked up 25 cents to $39.79 per
barrel in electronic trading on the New York Mercantile Exchange. It lost $1.78
on Monday to $39.54 per barrel. Brent crude, the international standard,
climbed 23 cents to $41.67 per barrel.
The U.S. dollar slipped to 104.52 Japanese yen from 104.65 late Monday. The
euro weakened to $1.1742 from $1.1769.